Lenovo plans to launch a bigger version of its S10 netbook, potentially breaking Intel's restrictions on the use of its Atom CPU in mini laptops.
Intel will still supply Atom processors for the S20, but not at a preferential discount, unnamed sources told the DigiTimes.
If DigiTimes sources are correct, Lenovo will only need to pay Intel an extra $10 per chip in order to create a premium netbook that stands out from 10in competitors. The 12in Lenovo S20 would be priced around $550 (£389), compared to $379 for the next version of Asus' popular Eee PC line.
Lenovo's original S10 netbook costs around £300 in the UK.